In December 2018, IRS stated that Telsa sold more than 200,000 plug-in electrical vehicles in the third quarter of 2018. As a result of this event, as required by law, the $7,500 tax credit for Tesla plug-ins bought in 2019 will be phased out in stages.
For purchases made after December 31, 2018, the credit is reduced to $3,750, followed by a reduction to $1,875 for Teslas acquired after June 30, 2019. Other vehicle credits are still available for buying qualified vehicles that meet the IRS’ standards.
Michael R. Noon, CPA, MSA
Prudhomme Associates CPAs
43460 Ridge Park Dr. Ste 220
Temecula, CA 92590